Average Unit kWh Prices for Business Electricity
Ever wondered what the prices per kilowatt hour (kWh) might be for your business? Check out our guide to current unit rates and compare business electricity prices to lower your costs.
The Big Six Suppliers
Finding great deals on your business electricity should not be difficult. It’s our mission to help UK businesses save on their business energy bills without the difficult and time-consuming process.
Our specialist team of business energy experts will guide you through the process, making switching business electricity suppliers easier than ever.
Compare business electricity prices
We have built a trusted panel of business energy suppliers to help UK companies find better deals on their business electricity rates. It is our mission to help seek out cheap business electricity prices & rates by exploring the most competitive tariffs on the market in seconds.
At Business Electricity Prices, our industry-leading team of business energy experts enables us to ensure you find great business electricity rates without sacrificing great customer service.
In 60 seconds, you can compare business electricity prices and select the tariff that’s right for your company.
Try our business electricity calculator allows you to compare business energy prices from a huge range of suppliers offering all tariff and contract types.
Average Business Electricity Prices in the UK
Based on the latest UK Government energy prices, here are the average business electricity prices per KWh for each type of business based on Q1 2022 data (source: UK Government):
|Business Size||Price per kWh|
|Very Small/Micro Business||20.06p|
When you compare business electricity prices, the most important costs to look out for are a tariff’s price per kWh (kilowatt-hour) and the daily standing charge. These costs tend to be hidden within your contract and they drive your business electricity bills up.
These price increases are not slowing down on Q1 of 2021 average business electricity prices have increased to 14 pence per kWh. The average standing charge costs currently range between 23p and 27p per day.
With surging business energy prices, it is now more important than ever to stay on top of your business electricity rates.
It is encouraged for businesses to switch business electricity suppliers to lock in great prices when they can. Monitoring wholesale business electricity prices is a great way of mapping out the best time to switch.
Switching business electricity supplier is still one of the quickest, and easiest ways to reduce business outgoings. UK companies are advised to compare business electricity supplier at least every 6 months to ensure they're getting a great deal.
Current business electricity prices & rates by supplier
|Supplier||Price Per Kwh||Daily Charge||Annual Cost|
Prices shown represent region 12/ London for a small business using 10,000 kWh of electricity per year. Rates correct at 26 September 2021 for a 1-year fixed contract. Tariffs vary by region and could change at any time.
|Supplier||Price Per Kwh||Daily Charge||Annual Cost|
Prices shown represent region 12/ London for a small business using 10,000 kWh of electricity per year. Rates correct at 26 September 2021 for a 3-year fixed contract. Tariffs vary by region and could change at any time.
Should You Compare Business Electricity from the Big Six Suppliers?
Market uncertainty can cause many to select a Big Six Supplier. However, many challenger energy suppliers are offering great business electricity rates that cannot be ignored.
We strive to find you a great deal on your business electricity and ensure you will receive outstanding customer service. Our experts do not have any bias when finding you a great deal on for your business electricity supply and this is sometimes from a challenger energy supplier.
Sometimes the Big 6 energy suppliers do not offer the best deals for business gas and electricity.
It’s always best practice to compare business electricity prices and consider a range of energy suppliers offering tariffs that fit your needs.
Here are the latest business electricity prices for the Big 6.
Cheapest Business Electricity Suppliers
Our comparison engine will find the latest deals on offer by each business electricity supplier on our trusted panel.
Business electricity prices fluctuate and can rapidly rise if not kept under control. That’s why we created tools to simplify the complicated market of business electricity.
Whilst it takes more time to switch in comparison to the domestic market, we take all the admin out of your hands. Here is a list of the UK’s cheapest business electricity suppliers:
|1. E.ON||E.ON mostly work with independent energy brokers offering aggressive pricing for SMEs.||Get latest price|
|2. EDF||EDF supplies 21% of UK businesses with energy and offer some of the lowest rates.||Get latest price|
|3. British Gas||The UK’s largest residential supplier with competitive rates for gas & electricity.||Get latest price|
|4. Npower||The 2nd largest commercial operator for companies looking to lower their bills.||Get latest price|
Unit Rate vs Standing Charge
It's important to completely understand the prices and terms of your business electricity contract. What may seem like a cheaper deal, may actually work out more expensive.
For example, an electricity supplier may increase the standing charge to offset any losses from a cheaper unit rate. This allows the electricity supplier to be seen as a much cheaper option for energy. You should compare overall prices based on your usage habits before you decide to switch business electricity.
How To Compare Business Electricity Rates that are Competitive?
The market is everchanging and it can be hard to predict how business electricity prices are going to change. Whilst the business energy switching process has its differences to domestic switching services, it works in a similar manner.
Changing business electricity tariff is an efficient and automated process driven by your business electricity supply contract.
Whether you are moving, operating a change of tenancy, or renewing on reduced terms, your new plan can only start when your existing arrangement expires.
By following the best practice guidelines set out below, you will ensure you take advantage of the competitive nature of this industry and avoid potential pitfalls whilst you switch business electricity:
Avoid rollover contracts
If you receive a renewal notice from your current provider, do not accept the automatic extension offer. Commonly known as “rollover contracts” your new charges are typically 70%-100% higher than you’re currently paying.
Terminate your current agreement
It’s essential you formally terminate your current agreement by email or post before the date outlined in your terms and conditions. If you don’t, you’re unable to change to a new contract.
Shop around for the best deals
Use our business electricity comparison tools to research all available options open to you. Over 61% of companies elect rollover contracts each year and sacrifice combined potential savings of £1.8 billion.
Out of contract and deemed rates
Ensure you formally sign a new term otherwise; you will activate so-called “out of contract” rates. These charges are at least double what you are paying today and come into force when your contract expires.
Small Business Electricity Prices
Managing costs is an important part of operating a small business. There are also so advantages of operating a small business when it comes to managing electricity supply.
For example, if your business has less than 10 employees or a turnover of less than £1.8 million they are classes a micro-business.
Businesses falling into this bracket means they are protected by certain rules when it comes to contract renewals. Making it much easier to manage energy and switch business electricity supplier.
This means that your current business electricity supplier must inform you when any business electricity contracts are coming to an end. Previously, suppliers would make it difficult to find out when your renewal is due in the hope that you will rollover onto an expensive standard variable tariff.
Businesses can also lock-in prices during a renewal window which opens anywhere from 6-12 months.
What about Half Hourly Meters and Multi-Site Businesses?
If you are one of the 120,000 larger consumption organisations in the UK operating under a half hourly metered provision, then specialist solutions are necessary to manage the negotiation and submission process.
This profile class requires your details to be directly submitted to the energy suppliers to receive bespoke business electricity quotes and follow a prescribed tendering process.
Our dedicated brokering team has helped many hundreds of larger consumption customers to reduce their invoiced business electricity costs, but also improve efficiency through management software.
Multi-site operations are managed differently from individual quotes because of the volume of meters involved. We will gather your data and request a group procurement offer for all your sites.
What are the different business electricity tariff types?
There is no shortage of tariff options for both SME and larger businesses looking to switch their business electricity. Each tariff type has its own benefits from locked-in prices, low market flexibility and renewable energy sources.
A fixed-rate tariff is one of the more popular options and can be a great option if the market prices are low.
Locking in cheap business electricity for several years can offer companies valuable savings and is great for maintaining control of bills and budgeting. Fixed-rate tariffs protect businesses from electricity price increases for the period of their contract.
Depending on the circumstances of the business, variable-rate tariffs offer great flexibility when it comes to the amount they pay from month to month. Businesses will pay the suppliers standard rate on a variable tariff, which can change each month.
This is especially great if the current business electricity rates are high, and businesses do not want to commit long-term as these contracts can be cancelled with 30 days’ notice.
Green energy tariffs
With more pressure being placed on businesses to reduce their carbon footprint, many organisations are switching to sustainable energy sources.
When you compare business electricity from a 'green' supplier or tariff doesn't mean you'll be paying more than others and can be a great option if you’re increasing your Corporate Social Responsibility (CSR) efforts.
Regional Business Electricity Costs
Energy providers can charge different rates depending on where you business premises is located. This is because of transmission costs, power plant location and UK demand. The infrastructure of where your business premises is location can have a big impact on gas and electricity costs.
Usually larger consumption businesses will not be affected as much and have access to the best business electricity prices due to the buying power they have. Whilst this is mostly a true statement, some regions have larger differences that apply no matter how large a businesses energy consumption.
As an example, electricity bills tend to be much higher in North Wales, Mersey and Cheshire in comparison to London.
Understanding your Business Electricity Bill
Whilst energy bills are easy to understand as are universal across energy providers, there are a few differences between domestic and business energy contracts. These include:
- Contract length - business electricity contracts are usually longer than domestic electricity. Businesses can be locked in to fixed rate deals for up to 5 years. Domestic contracts usually only last for up to 2 years.
- Electricity deals - Energy providers can be much more flexible with electricity prices and the wholesale energy market plays a much larger role in deciding these prices. Due to the amount of energy used by businesses, most suppliers purchase energy once a contract has been agreed. Domestic electricity is usually purchased months in advance.
- Energy contract terms - A new business energy contract is legally binding. Once it has been signed it is extremely expensive and difficult to change your energy supply. This is why it is important for businesses to understand the terms of the new contract before signing. Domestic customers can cancel their contract at any time by paying an exit fee.
Why Compare Business Electricity Prices With Us?
Switching your business electricity supplier with us means that your dedicated account manager will be in touch when your renewal windows opens again.
This ensures that you avoid expensive out of contract rates that business energy supplier often impose when a new agreement has not been negotiated at the end of your current contract.
All you need to switch is your business address and a few contact details. This information allows us to compare business electricity prices against. You will be able to a range of business electricity quotes within seconds.
Business Electricity Prices FAQs
How much can I save by switching energy suppliers?
If your business has never switched, or it’s a been a few years since you switched, you are likely to have allowed automatic increases to roll into your contracts.
This will mean that you will be paying much more than you need to for your business electricity.
Even if you only failed to change tariffs last year, you may save this time around by comparing business electricity prices.
Can I switch to a no standing charge tariff?
Most business energy contracts will come with a daily standing charge which remains the same no matter how much business electricity you have used that day.
However, many providers will not offer an electricity tariff with a zero standing charge with a competitive kWh cost.
No standing charge tariffs can benefit businesses which operate seasonally and those who open just a few days a week.
What is a typical price per unit of electricity?
The average business electricity unit price in 2021 is 12.59 pence per kWh.
The average price for small businesses is slightly higher at 14.08 pence per kWh with large businesses currently charged an average of 11.38 pence per kWh.
What are deemed contract rates?
A deemed rate is a special tariff for companies that have either recently moved into new premises or cancelled a contract without setting up a new one.
There is no formal contract in place, and you can move suppliers at any time.
If your business electricity is on deemed contract rates, we would recommend comparing energy suppliers as soon as possible.
Is business electricity cheaper than domestic?
Business energy prices tend to be cheaper than domestic energy. This is because energy providers usually only buy the gas and electricity once the new contract gas been agreed. This means that if company agrees to a 4 year contract, the supplier will purchase the energy to cover the full contracted period at the best business electricity rates available. These prices are usually inline with the wholesale energy market.
How Can Energy Management Systems Help My Business?
Companies can lower expenses by reducing consumption and introducing energy efficiency products. Innovations together with industry-leading desktop software help manage usage and maintain visibility via reporting analysis.
The Carbon Trust estimates that investing in efficiency annual savings of between 10% and 20% are achievable throughout the organisation.
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What Further Information is Available?
There are other websites that can help you with efficiency measures, market research and supplier complaints.
Ofgem is the industry regulator for the UK market who provide resolution management services. BEIS helps companies with government related schemes. The Energy Saving Trust has pages of excellent advice for saving energy and Utility Week report on the industry as a whole. Telephone us for free on 0800 690 6008 for quotes and advice. UK companies pay VAT at the current rate with non-profit and charities at a reduced rate.